Creamy Cheddar Scalloped Potatoes Recipe

These cheesy potatoes are a crowd-pleasing side that vanishes quickly. Tender potato chunks, three cheeses, and a creamy, flavorful sauce bake together until golden and bubbly — perfect for holidays, family dinners, potlucks, or anytime you want comfort food.

Cheesy potatoes in casserole dish with wooden spoon lifting some out.

4 Reasons To Love This Cheesy Potato Casserole

  1. Comfort food favorite: Potatoes and cheese create a rich, creamy side everyone loves.
  2. Made with real ingredients: Simple pantry staples and fresh dairy make a satisfying dish.
  3. Great for gatherings: Ideal for holidays, potlucks, and family meals.
  4. Make-ahead friendly: Assemble ahead to save time on busy days or holidays.
Wooden spoon lifting cheesy potatoes from casserole dish.

Ingredient Notes

Key ingredients for this cheesy potatoes recipe:

Labelled photo of ingredients needed to make cheesy potatoes.

See the recipe card below for full measurements and directions.

  • Potatoes: Yukon Golds are ideal — they hold their shape and have a naturally buttery texture. Other yellow-fleshed potatoes work well too.
  • Cheddar: Sharp cheddar gives the sauce a bright, cheesy backbone.
  • Butter, flour & milk: These create the creamy roux-based sauce; use whole milk for best richness.
  • Green onions & garlic: The whites are sautéed with garlic to flavor the sauce; the green tops are stirred in and used as a garnish.
  • Sour cream: Adds extra creaminess and a touch of tang—use full-fat if possible.
  • Dijon mustard: Boosts flavor and helps keep the sauce smooth while baking.
  • Seasoning: Bouillon powder or a good seasoning salt, sea salt, and fresh black pepper enhance the overall flavor.
  • Gouda & Parmesan: Extra melty cheeses layered in the middle and on top add depth and a golden finish. Use mild or smoked gouda or a mix.

How To Make Cheesy Potatoes

Here’s a step-by-step overview to make these cheesy potatoes from start to finish.

Step 1: Prep and boil the potatoes

Peel if you like, or leave the thin skins on Yukon Golds for texture. Chop about 3 pounds of potatoes into roughly ½-inch cubes. Place them in a large pot, cover with cold water, add 1 tablespoon kosher salt, and bring to a boil. Reduce to a simmer and cook until just fork-tender, about 10 minutes. Drain and set aside.

Boiled chopped potatoes in stainless steel strainer.

Step 2: Make the sauce

While potatoes cook, melt ¼ cup butter in a large saucepan over medium heat. Add the white parts of 3 chopped green onions and 3 minced garlic cloves; sauté about a minute. Whisk in ¼ cup flour and cook briefly to form a roux. Slowly whisk in 2 cups whole milk until smooth, then simmer until the sauce thickens, about 5 minutes.

Remove from heat and add 2 cups shredded sharp cheddar a handful at a time, stirring until melted. Stir in ½ cup full-fat sour cream, 1 teaspoon Dijon mustard, and 1–2 teaspoons bouillon powder. Season with sea salt and freshly ground black pepper to taste.

Sauce for cheesy potatoes being whisked in a Dutch oven.

Step 3: Assemble casserole

Add the cooked potatoes and the sliced green parts of the green onions (reserve a little for garnish) to the cheese sauce and gently combine. Transfer half the mixture to a lightly buttered 9×13-inch baking dish and sprinkle with about 1 cup shredded gouda and ¼ cup grated parmesan. Add the remaining potato mixture, smooth the top, and finish with the remaining gouda and parmesan.

Photo collage of cheesy potato casserole being assembled.

Step 4: Bake and serve

Bake at 375°F (190°C) until the top is golden and the sauce bubbles around the edges, about 20–25 minutes. For a more browned top, broil for a minute or two—watch closely to avoid burning. Garnish with reserved green onions and serve warm.

Cheesy potato casserole in a white baking dish.

Variations

  • Crunchy topping: Add breadcrumbs, crushed potato chips, or cornflakes for texture.
  • Spicy kick: Add chopped jalapeño, hot sauce, chili crunch, or a pinch of cayenne.
  • Switch cheeses: Try gruyère, smoked cheddar, pepper jack, or other melty cheeses.
  • Add meat: Stir in chopped ham or crispy bacon for more substance.
  • Make it a meal: Add shredded chicken and steamed broccoli or cauliflower; consider extra sauce or fewer potatoes to balance.

A Few Tips

Tips for the Best Cheesy Potato Bake

  • Salt the cooking water: Season the potato water so the potatoes absorb flavor as they cook.
  • Pre-cook, don’t overcook: Par-cooking the potatoes ensures even doneness and prevents the sauce from breaking; stop when fork-tender.
  • Grate cheese fresh: Freshly grated cheese melts smoother than pre-shredded varieties.
  • Layer cheeses: Combining a cheddar sauce with gouda and parmesan gives depth and great melt.
Wooden spoon lifting up some cheesy potato bake from casserole dish.

Storage Tips

  • To store: Keep leftovers in an airtight container in the refrigerator for up to 4 days.
  • To reheat: Warm in the oven, on the stovetop, or in the microwave until heated through.
  • To freeze: Freezing is not recommended; it can degrade the texture and creaminess.

FAQ

Can cheesy potatoes be made ahead of time?

Yes. Assemble up to a day ahead, cover, and refrigerate. Bring to room temperature before baking, then bake as directed.

Do I have to peel the potatoes?

No. Yukon Gold skins are thin and can be left on for texture. Peel if you prefer a smoother bite.

Can I slice the potatoes instead of dicing them?

Yes. Thin slices give a gratin-like texture. If slicing, pre-cook until just fork-tender before assembling.

Closeup of three cheese potato bake with wooden spoon lifting some out.

More Comfort Food Side Dishes

Scoop of gouda mac and cheese being lifted from white casserole dish.

Gouda Mac and Cheese

Creamy whipped mashed potatoes in a serving bowl with serving spoon.

Creamy Whipped Mashed Potatoes

Bacon, sage and onion stuffing in a white casserole dish with serving spoon in corner.

Bacon, Sage and Onion Stuffing

Wooden spoon lifting scoop of white cheddar mac and cheese from casserole dish.

White Cheddar Mac and Cheese

Did you make these cheesy potatoes? I’d love to hear — please leave a comment below.

Wooden spoon digging into a baking dish of cheesy potatoes.

Cheesy Potatoes

  • Author: Vanessa Gilic
  • Prep Time: 15 min
  • Cook Time: 30 min
  • Total Time: 45 min
  • Yield: 8 servings
  • Category: Side Dish
  • Method: Baked
  • Cuisine: American, Australian
  • Diet: Vegetarian

Description

These cheesy potatoes combine tender potatoes with a creamy three-cheese sauce, baked until golden and bubbly — a go-to side for special occasions and weeknight comfort alike.


Ingredients

  • 3 pounds Yukon Gold potatoes (or similar yellow potatoes)
  • 1 tablespoon kosher salt
  • ¼ cup butter
  • 3 green onions, thinly sliced (whites and greens separated)
  • 3 cloves garlic, minced
  • ¼ cup unbleached all-purpose flour
  • 2 cups whole milk
  • 2 cups shredded sharp cheddar cheese
  • ½ cup full-fat sour cream
  • 1 teaspoon Dijon mustard
  • 1–2 teaspoons bouillon powder, to taste
  • Sea salt and freshly ground black pepper, to taste
  • 1–2 cups shredded gouda cheese
  • ½ cup freshly grated parmesan cheese

Instructions

  1. Preheat: Preheat oven to 375°F (190°C) and butter a 9×13-inch baking dish.
  2. Prep and boil potatoes: Chop potatoes into ½-inch cubes, cover with cold water, add 1 tablespoon kosher salt, bring to a simmer, and cook until fork-tender, about 10 minutes. Drain.
  3. Make sauce: Melt butter over medium heat, sauté white parts of green onions and garlic about a minute. Whisk in flour to form a roux, then slowly add milk and cook until thickened. Remove from heat and stir in cheddar until melted. Add sour cream, Dijon, and bouillon powder. Season with salt and pepper.
  4. Assemble: Stir potatoes and green onion greens into the sauce. Spread half the mixture in the dish, sprinkle with half the gouda and parmesan, add the rest of the potatoes, and top with remaining cheeses.
  5. Bake: Bake 20–25 minutes until bubbly and golden. Broil briefly if you want extra browning—watch carefully.
  6. Serve: Garnish with reserved green onions and serve warm.

Notes

  • To peel or not: Yukon Gold skins are optional based on your texture preference.
  • Storage: Refrigerate leftovers in an airtight container for up to 4 days.
  • Make ahead: Assemble up to a day in advance, refrigerate covered, then bring to room temperature before baking.

Did you make this recipe?

Share a photo or comment — I’d love to see how it turned out!